NAPCO SECURITY INVESTIGATION INITIATED BY FORMER LOUISIANA ATTORNEY GENERAL: Kahn Swick & Foti, LLC Investigates the Officers and Directors of NAPCO Security Technologies, Inc. - NSSC
NEW ORLEANS, March 8, 2024 /PRNewswire/ -- Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC ("KSF"), announces that KSF has commenced an investigation into NAPCO Security Technologies, Inc. (NasdaqGS: NSSC).
On August 18, 2023, the Company disclosed that "a material weakness existed in the Company's internal controls over financial reporting for each of the first three quarters of fiscal 2023, rendering the Company's disclosure controls and procedures ineffective at the end of each such quarter" due to "certain errors related to the Company's calculation of cost of goods sold ("COGS") and inventory for each of the first three quarters of fiscal 2023...[a]s a result, inventories were overstated and COGS was understated, resulting in overstated gross profit, operating income and net income for each period." Soon after, on September 1, 2023, the Company filed amended quarterly reports confirming the severity of its financial misstatements, including that net income had been overstated by as much as 114.97%, its income per share had been overstated by as much as 112.5%, its operating income had been overstated by as much as 118.02%, and its gross profit and gross margins had been overstated by as much as 35.59%.
The Company and certain of its executives have been sued in a securities class action lawsuit charging them with failing to disclose material information in violation of federal securities laws, which remains pending.
KSF's investigation is focusing on whether NAPCO's officers and/or directors breached their fiduciary duties to its shareholders or otherwise violated state or federal laws.
If you have information that would assist KSF in its investigation, or have been a long-term holder of NAPCO shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-833-938-0905 or email KSF Managing Partner Lewis Kahn (lewis.kahn@ksfcounsel.com), or visit us at https://www.ksfcounsel.com/cases/nasdaqgs-nssc/ to learn more.
About Kahn Swick & Foti, LLC
KSF, whose partners include former Louisiana Attorney General Charles C. Foti, Jr., is one of the nation's premier boutique securities litigation law firms. KSF serves a variety of clients – including public institutional investors, hedge funds, money managers and retail investors – in seeking recoveries for investment losses emanating from corporate fraud or malfeasance by publicly traded companies. KSF has offices in New York, Delaware, California, Louisiana and New Jersey.
To learn more about KSF, you may visit ksfcounsel.com.
Contact:
Kahn Swick & Foti, LLC
Lewis Kahn, Managing Partner
lewis.kahn@ksfcounsel.com
1-877-515-1850
1100 Poydras St., Suite 960
New Orleans, LA 70163
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SOURCE Kahn Swick & Foti, LLC
